Outrageous Phenomenon in the Automobile Industry
Post date
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26/11/2009 15:03
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Outrageous phenomenon triggered by Electric Vehicle
Electric Vehicle is the hottest topic in the automotive industry. EV is also the vital breach for those automobiles manufacture enterprises that in pursuit of growth. This year, EV has been used as a positive factor to stimulate the stock price for certain enterprises in several occasions, as a result now it has an inestimable prospect. Under the temptation of making profit, automobiles manufacture enterprises started to set foot in this aspect one after another. Even those enterprises with no Technological background started to produce EV, and it is when the turmoil appears.
1.The overflow of "Pirated Electric Vehicle" market
According to CCTV, a large number of "Pirated Vehicle" manufacturers emerged in Shandong and Jiangsu lately and more than 20 of them are in Shandong province alone. Some of these vehicle manufacture enterprises are just small workshops while some of them are with significant scale, including Shandong Shifeng Group, the largest agricultural vehicles manufacturer in China.
The above-mentioned small workshops manufactured cars possess the appearance of Chery QQ, Chevrolet SPARK, and even Benz SMART, and they are pure electric cars as well. But these EV are not made through mechanized assembly line but hand assembly. The process is so simple and the technology content of these manufactured cars are low. They are just a motor installed on a steel chassis with 4 wheels, and then put on a body shell that bought from official suppliers, and the steering wheel, seats and the battery. A pure electric car is done.
Not only the appearance, but the interior of these cars are all modeled after branded products, however, most of the function are just embellishments and cannot be practically used, not to mention the safety performance. But they are so popular that you have to pre-order if you want to buy one. The selling price of this kind of EV is around RMB 20,000, and in a nutshell, this is a very lucrative business. Shandong Shifeng Group plans to produce 50,000 annually and the annual capacity of Shandong province is over 100,000. In some counties the market for the product is surprisingly huge.
2. Serious consequences may be triggered
According to report, Wei Xue-qing, the vice-chairman of Shandong Association of Automobile Manufacturers (SAMA), was shocked when he knew that there are so many EV manufacturers emerged in the province. After a test drive he expressed his huge disappointment. He stated that if testing these vehicles in strict accordance with the standard of motor vehicles, none of the manufacturers' products are qualified.
Lin Cheng, the project leader of State "863" Electric Vehicle Significant Special Project, believes that such kind of electric vehicles are just an upgrade version of battery car and it cannot represent the development direction of China EV industry.
In fact, up to now, the BYD F3DM is the only EV can be qualified for the recent list of new cars released by the Ministry of Industry and Information Technology and granted the road permit. This kind of vehicles seriously violate the Road Traffic Ordinance and were disqualified in the road test. But the support from local government to them means that the whole situation was driven by profit. Lin Cheng stated that once this kind of EV is permitted to launch, not only will there be many manufacturers without essential technical background swarming into the business that will lead to low-level waste and potential safety hazard, but will also impact on the implementation of the industrialization of advanced EV.
10 domestic automobiles manufacture enterprises join hands to set electronic vehicles standard
Though EV is still a novelty but it has attracted the attention of the government. Nonetheless, the above-mentioned issue of "Pirated Vehicle" put EV industry in an awkward position. To lead the industry to the right development direction, relevant standards and policies are needed to be strengthened and completed.
It is learnt that in order to achieve the planned objectives of EV development set in "Restructuring and Revitalization Plan for Automobile Industry", the top 10 domestic automobiles manufacture enterprises, i.e. Shanghai Automotive Industry Corporation (SAIC), China FAW Group, Dongfeng Automobile Co Ltd, Changan Automobile Group, Guangzhou Automobile Group (GAC), Beijing Automotive Group, Sinotruk, Brilliance Auto, Chery Automobile and Anhui Jianghuai Automobile (JAC), signed the "Electric Vehicle Development Joint Action Plan Outline" which lay down the development strategy of "to take the initiative role to lead, to take action in joint force, to focus on key areas and to develop through innovation" for the EV industry. The project leaders of EV program in these enterprises will team up a leading group for EV industry and carry out the preparation for the united establishment of the EV standard.
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